FULL  TEXT 


OF  THE 


TAX  LIMIT  LAW 


As  passed  by  the  House  and  Senate,  and  as  it  will  be  engrossed  for  the  signatures 
of  the  Speaker  of  the  House  and  the  President  of  the  Senate  to  be  signed  by  them 


in  the  presence  of  their  respective  bodies  when  in  session  on  May  10,  1910,  and 
then  submitted  to  the  Governor  for  his  approval. 


Published  by  the 

Ohio  State  Board  of  Commerce. 


78th  General  Assembly, 
Regular  Session,  1910. 


Senate  Bill  No/4 


MR.  ALSDORF. 


A  BILL 


To  secure  an  equitable  valuation  of  property  for  taxation  by  limiting  the  tax 
rate,  limiting  the  power  to  issue  bonds,  removing  certain  penalties  for  improper 
valuation  and  amending  certain  sections  of  the  General  Code. 

Be  it  enacted  by  the  General  Assembly  of  the  State  of  Ohio: 

Section  1.  In  any  taxing  district,  the  taxing  authority  shall  levy  a  tax 
sufficient  to  provide  for  sinking  fund  and  interest  purposes. 

Section  2.  The  maximum  rate  of  taxes  that  may  be  levied  for  all  purposes, 
by  the  taxing  authorities  of  any  taxing  district,  upon  the  taxable  property  therein, 
shall  not  in  any  one  year  exceed  ten  mills  on  each  dollar  of  the  tax  valuation 
of  the  taxable  property  of  such  district,  for  that  year,  including  the  taxes  levied 
under  authority  of  Section  one  of  this  act. 

If,  in  any  year,  such  rate  of  ten  mills  will  not  produce  an  amount  equal  to 
the  aggregate  amount  of  taxes  levied  in  such  district  in  the  year  1909  plus  six 
per  cent,  thereof  for  the  year  1911,  nine  per  cent,  for  the  year  1912,  and  twelve 
per  cent,  thereof  for  any  year  thereafter,  but  exclusive  of  any  additional  amount 
authorized  for  sinking  fund  purposes,  or  under  the  provisions  of  section  five  of  this 
act,  or  emergencies  as  provided  for  in  sections  forty  four  hundred  and  fifty,  forty 
four  hundred  and  fifty  one,  fifty  six  hundred  and  twenty  nine  and  seventy  four 
hundred  and  nineteen  of  the  General  Code,  such  rate  may  be  increased  to  the 
extent  necessary  to  produce  such  aggregate  amount,  but  in  no  case  to  exceed 
fifteen  mills  exclusive  of  levies  for  sinking  fund  and  interest  purposes. 

Section  3.  The  maximum  rate  of  taxation  in  any  taxing  district  for  any 
purpose,  as  now  fixed,  shall  be  and  is  hereby  changed  so  that  such  maximum 
rate,  as  levied  on  the  total  valuation  of  all  taxable  property  in  the  taxing  district 


in  each  of  the  years  1911  and  1912  and  any  year  thereafter  would  produce  no 
greater  amount  of  taxes,  than  the  present  maximum  rate  for  such  purpose,  if 
levied  on  the  total  valuation  of  all  the  taxable  property  therein  for  the  year  1910, 
would  produce,  plus  the  additions  herein  provided  for.  Any  minimum  rate 
required  by  law  to  be  levied  for  any  purpose,  is  hereby  reduced  in  like  proportion 
that  the  maximum  rate  is  herein  reduced.  The  intent  and  purpose  of  this  act  is  to 
provide  that  an  increase  in  the  total  valuation  of  all  taxable  property  in  the 
several  taxing  districts,  shall  not  increase  the  total  amount  of  taxes  now  levied 
therein,  except  to  the  amount  of  the  additions  herein  provided  for,  but  nothing 
herein  shall  prevent  the  levying  of  an  aggregate  tax  of  ten  mills  in  any  district. 

Sec.  -4.  For  the  emergencies  mentioned  in  sections  forty  four  hundred  and 
fifty,  forty  four  hundred  and  fifty  one,  fifty  six  hundred  and  twenty  nine  and 
seventy  four  hundred  and  nineteen  of  the  General  Code,  the  taxing  authorities 
of  any  district  may  levy  a  tax  sufficient  to  provide  therefor,  irrespective  of  any 
of  the  limitations  of  this  act. 

Sec.  5.  If  in  any  one  year,  in  any  taxing  district,  the  aggregate  amount  of 
taxes  authorized  by  Section  two  of  this  act  is  insufficient,  a  greater  tax  may 
be  levied  in  such  taxing  district  for  any  purpose  for  which  such  taxing  district 
is  authorized  to  levy  taxes,  if  the  proposition  to  make  such  additional  levy  shall 
first  be  submitted  to  the  electors  of  such  taxing  district.  The  submission  of 
such  question  to  the  electors  shall  be  at  the  next  general  election  after  an  ordi¬ 
nance  or  order  for  such  purpose  takes  effect,  if  there  be  such  an  election  within 
ninety  days  thereafter.  In  case  no  general  election  takes  place  within  such 
period,  such  question  may  be  submitted  at  a  special  election  in  the  manner  pro¬ 
vided  by  Sections  thirty-nine  hundred  and  forty-nine  to  thirty-nine  hundred  and 
fifty- two  of  the  General  Code,  inclusive,  so  far  as  they  may  be  applicable.  Such 
increased  levy  may  be  made  if  a  majority  of  the  votes  cast  on  the  question  at  such 
election  are  in  favor  thereof.  The  form  of  the  ballot  cast  at  such  election  shall  be : 

For  an  additional  tax  of . dollars  for  the  purpose  of 

.  yes. 

For  an  additional  tax  of  .  dollars  for  the  purpose  of 

.  no. 

Sec.  6.  Whenever  two  or  more  taxing  district  are  consolidated  by  annexa¬ 
tion  or  otherwise,  the  aggregate  amount  of  taxes  authorized  under  Section  two 
of  this  act,  for  such  consolidated  district  shall  not  exceed  the  sum  of  the  aggregate 
amounts  which  would  have  been  authorized  for  all  of  said  taxing  districts  separately. 

Sec.  7.  That  sections  thirty-nine  hundred  and  forty-two,  thirty-nine  hundred 
and  forty-five,  thirty-nine  hundred  and  forty-eight  and  thirty-nine  hundred  and 
fifty-four  of  the  General  Code  be  amended  to  read  as  follows: 

Sec.  3942.  The  net  indebtedness  incurred  by  any  township  or  municipal 
corporation  for  the  purposes  mentioned  in  Sections  thirty -two  hundred  and  ninety- 
five  and  thirty-nine  hundred  and  thirty-nine  of  the  General  Code,  shall  never  exceed 
two  and  one-half  per  cent,  of  the  total  value  of  all  the  property  in  such  corporation 
or  township,  as  listed  and  assessed  for  taxation  unless  the  excess  of  such  amount 
is  authorized  by  vote  of  the  qualified  electors  of  the  township  or  corporation  in  the 
manner  hereinafter  provided. 

Sec.  3945.  Such  limitation  of  one  per  cent,  and  two  and  one-half  per  cent, 
hereinbefore  prescribed  shall  not  affect  bonds  lawfully  issued  for  such  purposes 
upon  the  approval  of  the  electors  of  the  township  or  corporation. 


2 


Sec.  3948.  Before  any  bonds  in  excess  of  such  limitations  of  one  per  cent, 
and  two  and  one-half  per  cent,  are  issued  and  tax  levied,  the  question  of  issuing 
them  shall  be  submitted  to  the  voters  of  the  township  or  corporation  at  a  general 
or  special  election. 

Sec.  3954.  No  municipal  corporation  or  township  shall  create  or  incur  a 
net  indebtedness  under  the  authority  of  this  chapter  in  excess  of  five  per  cent, 
of  the  total  value  of  all  the  property  in  such  township  or  corporation  as  listed 
and  assessed  for  taxation.  Bonds  issued  in  good  faith  for  such  purposes,  which 
at  the  time  of  issue  were  within  the  limitations  existing  at  the  time  of  such  issue, 
shall  be  valid  obligations  of  the  township  or  municipal  corporation  which  issued 
them.  In  ascertaining  the  limitations  of  such  five  per  cent,  and  of  such  two  and 
one-half  per  cent.,  all  such  bonds  shall  be  considered,  except  those  specifically 
excluded  by  section  thirty-nine  hundred  and  forty-six  of  the  General  Code. 

Section  8.  That  sections  5398,  5399,  5400,  5401,  and  5402  of  the  General 
Code,  be  amended  so  as  to  read  as  follows: 


(T> 


Sec.  5398.  If  a  person  required  to  list  property  or  make  a  return  thereof  for 
taxation,  either  to  the  assessor  or  the  county  auditor,  in  the  year  1911  or  in  any 
year  thereafter  makes  a  false  return  or  statement,  or  evades  making  a  return  or 
statement,  the  county  auditor  for  each  year  shall  ascertain  as  near  as  practicable, 
the  true  amount  of  personal  property,  moneys,  credits,  and  investments  that  such 
person  ought  to  have  returned  or  listed  for  the  year  1911  or  for  any  year  thereafter 
for  which  the  inquiries  and  corrections  provided  for  in  this  chapter  are  made.  To 
the  amount  so  ascertained  as  omitted  for  each  year  he  shall  add  fifty  ber  cent., 
multiply  the  omitted  sum  or  sums,  as  increased  by  said  penalty  by  the  rate  of 
taxation  belonging  to  said  year  or  years,  and  accordingly  enter  the  amount  on  the 
tax  lists  in  his  office,  giving  a  certificate  therefor  to  the  county  treasurer  who  shall 
0}  collect  it  as  other  taxes. 

Sec.  5399.  If  any  person  required  to  list  property,  or  make  a  return  thereof 
for  taxation  to  the  assessor  or  county  auditor,  or  to  a  board,  officer,  or  person, 
other  than  a  board  composed  of  officers  of  more  than  one  county,  in  the  year 
nineteen  hundred  and  eleven ,  or  in  any  year  or  years  thereafter  fails  to  make  a  return 
or  statement,  or  if  such  person  makes  a  return  or  statement  of  only  a  portion  of 
his  taxable  property,  and  fails  to  make  a  return  as  to  the  remainder  thereof,  or  if 
he  fails  to  return  his  taxable  property  or  part  thereof,  according  to  the  true  value 
thereof  in  money,  as  provided  by  law,  the  county  auditor  for  each  year  as  to 
*3uch  property  omitted  and  as  to  property  not  returned  or  taxed  according  to  its 
true  value  in  money,  shall  ascertain  as  near  as  practicable  the  true  amount  of  per¬ 
sonal  property,  moneys,  credits,  and  investments  that  such  person  ought  to  have 
-  returned  or  listed,  and  the  true  value  at  which  it  should  have  been  taxed  in  his 
county  for  not  exceeding  the  five  years  next  preceding  the  year  in  which  the 
inquiries  and  corrections  provided  for  in  this  section  and  in  the  next  preceding  and 
the  next  two  succeeding  sections  are  made  and  not  in  any  event  prior  to  the  year 
nineteen  hundred  and  eleven,  and  multiply  the  omitted  sum  or  sums  by  the  rate 
of  taxation  belonging  to  said  year  or  years,  and  accordingly  enter  the  amount  on 
the  tax  lists  in  his  office,  giving  a  certificate  therefor  to  the  county  treasurer,  who 
shall  collect  it  as  other  taxes.  The  term  “personal  property”  as  used  in  this 
section  shall  apply  to  all  kinds  of  omitted  property  for  the  taxation. of  which, 
for  any  of  the  years  in  which  it  was  omitted,  provision  has  not  been  made  by  law. 

Sec.  5400.  The  power  and  duty  of  the  county  auditor  under  the  provisions 
of  the  next  preceding  section,  shall  extend  to  all  cases  where  property,  taxable 

3 


£ 


36608 


within  his  county,  has  for  any  reasons  not  been  assessed  and  taxed  according! 
to  its  true  value  in  money,  as  provided  by  law,  except  that  where  provision  is) 
made  by  law  for  the  appraisement  and  assessment  of  property  by  a  board  com-! 
posed  of  officers  of  more  than  one  county,  and  such  property  or  part  thereof  has! 
escaped  taxation,  the  duties  provided  in  such  section  shall  be  performed  by  such! 
board.  The  board,  at  any  subsequent  meeting,  may  appraise  and  assess  suchj 
omitted  proberty  for  the  year  or  years  so  omitted,  and  certifiy  its  assessment  to) 
the  proper  officer  or  officers  to  be  placed  upon  the  tax  lists  of  the  proper  county 
or  counties  for  the  collection  of  omitted  taxes  thereon  in  a  like  manner  as  cur-j 
rent  assessments  are  certified  by  said  board,  and  such  officer  or  officers  shall  give] 
a  certificate  therefor  to  the  county  treasurer,  as  in  other  cases. 

Sec.  5401 .  The  county  auditor,  if  he  shall  have  reason  to  believe,  or  is  informed] 
that  a  person  has  in  the  year  nineteen  hundred  and  eleven  or  in  any  year  thereafter , 
given  to  the  assessor  a  false  statement  of  the  personal  property,  moneys,  or  credits,) 
investments  in  bonds,  stocks,  joint  stock  companies,  or  otherwise,  that  the  assessor 
has  not  returned  the  full  amount  required  to  be  listed  in  his  ward  or  township,  or 
has  omitted  or  made  an  erroneous  return  of  property,  moneys,  or'  credits,  invest-  j 
ments  in  bonds,  stocks,  joint  stock  companies,  or  otherwise,  which  are  by  law) 
subject  to  taxation,  shall  proceed,  in  said  year  nineteen  hundred  and  eleven  or  in  any  \ 
year  thereafter  at  any  time  before  the  final  settlement  with  the  county  treasurer  to 
correct  the  return  of  the  assessor,  and  charge  such  persons  on  the  duplicate  with 
the  proper  amount  of  taxes.  To  enable  him  so  to  do,  he  may  issue  compulsury 
process,  and  require  the  attendance  of  any  persons  whom  he  thinks  have  knowledge 
of  the  articles,  or  value  of  the  personal  property,  money  or  credits,  investment  in  | 
bonds,  stocks,  joint  stock  companies,  or  otherwise,  and  examine  such  persons, 
on  oath,  in  relation  to  such  statement  or  return.  The  auditor,  in  all  such  cases* 
shall  notify  every  such  person,  before  making  the  entry  on  the  tax-list  and  dupli¬ 
cate,  that  he  may  have  an  opportunity  of  showing  that  his  statement  or  the  return 
of  the  assessor  was  correct.  The  auditor,  in  all  such  cases  shall  file  in  his  office  a 
statement  of  the  facts  or  evidence  upon  which  he  made  such  correction;  but,  he 
shall  not  reduce  the  amount  returned  by  the  assessor,  without  the  written  assent 
of  the  auditor  of  state,  given  on  a  statement  of  facts  submitted  by  the  county 
auditor. 

Sec.  5402.  If  a  person  makes  a  false  statement  of  the  amount  of  property 
for  taxation,  to  wholly  or  partially  evade  the  payment  of  taxes,  he  shall  pay 
all  costs  and  expenses  that  may  be  incurred  under  the  provisions  of  the  next 
preceding  section,  and  like  fees  and  costs  shall  be  allowed  and  paid  as  are  allowed 
by  law,  for  similar  services,  and  if  not  paid,  may  be  collected  before  any  justice  of 
the  peace  of  the  proper  county,  by  suit  in  the  name  of  the  county  commissioners. 
In  all  cases  under  such  section,  where  the  statement  is  found  correct,  and  no 
intention  to  evade  the  payment  of  taxes  appears,  the  costs  and  expenses  incurred 
shall.be  paid  out  of  the  county  treasury  of  the  proper  county,  on  the  order  of  the 
county  auditor. 

Section  9.  The  provisions  of  this  act  shall  not  apply  to  the  levy  or  collec¬ 
tion  of  taxes  for  the  year  nineteen  ten  or  to  the  assessment  of  personal  property 
for  taxation  for  the  year  1910. 

Sec.  10.  That  said  original  Sections  3942,  3945,  3948,  3954,  5398,  5399, 
5400,  5401,  and  5402  of  the  General  Code,  and  all  acts  or  parts  of  acts  in  conflict 
herewith  be  and  the  same  are  hereby  repealed. 

Sec.  11.  This  act  shall  take  effect  and  be  in  force  from  and  after  January 
1.  1911. 


